New Financial Year, New Savings

5 Jul 2012
2:35 PM - Carbon Tax and Electricity Increases

Marking the start of the new financial years comes the carbon tax and another electricity price increase. Whether your with or against the tax I think we are all a bit tired of hearing about it, so I’m just going to point out the implications for current and potential solar system owners.

The most important point for the solar industry is the average 18% price increase to electricity, this will differ depending on your provider but will mean an approximate $300 increase to your yearly spending. This means existing customers will now experience greater yearly savings and a faster payback period; good news for existing customers. These better figures are available to anyone considering a solar system, making it a good time to invest and take advantage of the benefits straight away.

Additionally the tax on carbon emissions will see current system owners obtain a further saving. By producing your own electricity you will save on carbon emissions throughout the year, totalling to a saving of approximately $70. While not a big figure it’s a nice bonus for choosing a clean energy for your home.

On top of additional savings it has been announced that the recommended NSW Feed in Tariff will be increased to a maximum of 12.9 cents per kWh. While providers still have free rein over what they pay, is it estimated that this will save consumers with a small 1.5kW system around $60 per year. While there are a lot of variables in how much savings this will grant each customer, simply put the larger the system the more savings that will be obtained.

In short due to the added costs associated with buying electricity from the providing companies and the higher feed in tariff, the incentives for purchasing a solar system now has increased; with a faster payback and further yearly savings.